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In Calendar Year (CY) 2025, Mercedes-Benz India achieved its best year in terms of revenue, delivering 19,007 cars to customers in the country. Out of these, the brand's Top-End Vehicles (TEV), including Mercedes-Maybach and AMG models, contributed to 25 percent of sales. The Core model lineup, including the E-Class sedan and GLC SUV, contributed 62 percent of sales and the entry-level models, such as the A-Class sedan and GLA SUV, contributed just 13 percent. Typically, a low margin for entry-level models would concern carmakers but not Mercedes-Benz India. Here's why.
In its best-ever revenue year, the German carmaker's 'Entry Luxury' models accounted for just 13 percent of sales, down from a 20 percent drop in demand compared to CY 2024. However,
Mercedes-Benz India claims it's part of the plan. 'This is in line with the brand’s strategy of not compromising product substance or participating in price competition in the market.' An official statement said.
This symbolises the unique position that Mercedes-Benz India finds itself in, where the more premium and exclusive cars prove to be the brand's breadwinners instead of the gateway, entry-level models that were designed to bring in a larger flock of first-time buyers. The trend continues across other sub-segments as well.
While demand for entry-level models dropped by 20 percent year-over-year (YoY), the AMG line of performance models grew by 34 percent, top-end cars like the S-Class and Mercedes-Maybach grew by 11 percent and the battery electric vehicle (BEV) portfolio grew by 12 percent, with the high-end EV models like the EQS SUV making up for 20 percent of all top-end sales YoY. For perspective, the EQS SUV costs Rs 1.33 crore ex-showroom and the EQA electric SUV costs Rs 67.20 lakh ex-showroom.
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Fortunately, this does not mean that Mercedes-Benz India will be foregoing the entry-level models any time soon. It simply indicates the introduction of more robust gateway models that justify the brand's absence from any price wars to attract new buyers. The carmaker has recently confirmed that it will launch 12 new models by the end of 2026 that will include fresh cars and facelifts. The new crop of cars will also include the CLA Electric coupe sedan, signalling an electric push in the brand's entry-level portfolio.
